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5 Signs You Need to Consolidate Debt, Fast!

Feb 13, 2023
young couple worrying about their debt

Outstanding debt from several high-interest credit cards, less than stellar financing terms on your auto loan, and too many bills, in general, can create an overwhelming amount of stress surrounding your finances. If there’s no end in sight for your debt and paying off loan balances seems almost unattainable, you might be a great candidate for a debt consolidation loan. 

Consolidating your debt into a lower-rate home equity loan, personal loan, or low-rate credit card can streamline your debt into one easy payment, pay off your debt earlier, free up some extra money to offer your finances some breathing room, or offer you the chance to apply additional savings towards the principal of your outstanding balances paying off your debt earlier. Here are some telltale signs that it may be time to pay off those balances once and for all. 


Signs You Need to Consolidate Debt Before More Damage Is Done


1. Your Paycheck Runs Out Before Your Bills Do

When you have multiple high-interest loans, the monthly payments can really add up. In fact, many consumers report being short each month when it’s time to pay bills due to the multiple excessive payments. If you notice your paycheck is accounted for in full before it even arrives, it’s time to consider debt consolidation. 


2. You Regularly Forget to Pay a Bill Each Month

When you have so many bills to pay each month, it can be overwhelming. Remembering to pay them all on time each month is a task in itself and missing payments lead to issues with your credit score. If you notice yourself missing a payment or two, it’s time to streamline your outstanding debt into one easy-to-remember payment.


3. You Have Multiple Monthly Loan & Credit Card Payments

Not only can multiple monthly loan payments wreak havoc on your budget, but the interest can also add up. If you have multiple major loan payments due monthly, you should consider the benefits that debt consolidation can offer. Save money on interest, shorten your loan terms, pay off your debt faster, and save more money by applying for a home equity loan, personal loan, or low-rate credit card to consolidate your debt today.


woman calculating receipts bills and invoices


4. You Are Only Paying the Minimum Amount Due

Paying the minimum amount due on your credit cards each month will get you nowhere...or at least it will feel like it. Making just the minimum monthly payment each month can actually result in it taking several years to pay off credit card balances and cause you to pay added interest by extending the length of time you hold a balance. If you can only afford the minimum monthly credit card payment, it may be time to consider a debt consolidation loan. 


5. Your Debts Are Incurring High-Interest Rates

When you have a high-interest rate on any type of loan, you could be paying too much for the money you borrowed. Excessive rates can make it difficult to reach your financial goal of being debt free. Use a reputable debt consolidation calculator to see your potential savings and shortened loan terms by consolidating your debt today.


How to Tell if You Are Ready to Consolidate Debt 


Although consolidating debt saves many consumers from having to pay several high-interest bills while benefiting from additional savings and possibly shortened loan repayment times, it may not be for everyone. 

Before consolidating your debt with a home equity loan, personal loan, or low-rate credit card from a trusted local lender, be sure you do your research to determine if it is the right choice for your financial situation.

Before applying, check your credit score and ensure any errors have been corrected and fixed. The better your credit rating when you apply for your debt consolidation loan, the better interest rates you will receive. Also, make sure that once you receive your money to pay off your debt, you follow through with your debt payoff and have a new spending and budget plan in place so that you don’t end up in a similar situation in the future.  


If you are considering a debt consolidation loan, CCCU can help you find the best solution for your unique financial situation when you visit any of our branch locations.

Our home equity loans, personal loans, or low-rate credit cards are great debt consolidation solutions.